7 Reasons Why You Should Own Your Home

Video: http://youtu.be/CcsuvlEkWQo

What is great about America?  It’s the American Dream, of course!  The ability to control your own destiny, the freedom to make your own choices, the opportunity to have something that belongs to you.  And the cornerstone of the American Dream is home ownership.

During my 25 year real estate career, I’ve been a strong advocate for homeownership.  My mission is to see every renter buy their own home.  Yes, that’s a big goal!  Last year, I decided that the best way to get this message out to millions would be to publish a book. So I did! 

“Buy Your First Home” is a handy guide and today we’re going to take a page out of this book.  Let’s take a look at the 7 reasons why you should own your home!

1. Cheaper than rent

In today’s real estate market, it is cheaper to own a home than to rent in 98 of the top 100 metro areas of the United States, according to a recent article published by The Huffington Post (Kavoussi, 2012).  That is truly astounding!  In most places in America, a mortgage housing payment often costs the same or less than rent.  While home prices won’t stay this low forever, any time is a great time to buy if it makes financial sense for your family’s budget.

2. Family stability

The second reason is family stability.  When you own a home, you know you and your family will be living in one place for a long time.  If you have children in school, you know they are not going to have to change schools just because your landlord gave you a notice to move.  Children thrive when they know they have a stable home to come back to every day.

Once you get to know your neighbors, you and your family will feel safe in the community.  In a great community, kids play together and neighbors look out for each other.  A good neighborhood offers a sense of security to residents.

3. Tax benefits

The third reason is the tax benefit of being able to write off your mortgage interest, property taxes, and other costs on your annual income taxes.  By itemizing their tax deductions, homeowners find that they save money because they owe less federal and state taxes.  That is much different from renting and it is a big reason why many renters decide to buy a home.  In fact, tax laws are written in favor of home ownership

4. Anticipated appreciation

Another reason is anticipated appreciation.  This is why manyhomeowners invest in a house and think of it as an investment.  Although, I would caution you NOT to buy a house solely for future appreciation, because the house may depreciate in the short term, depending on the market. 

However, studies have shown that over the long term, homeowners will often realize an appreciation rate of about 5% per year.  That is why we talk about buying and owning for the long term.  Renters do not build wealth.  Home owners do.

5. Future retirement

Another great reason to own your home is future retirement.  After you pay off your mortgage, you will own your home free and clear without any monthly mortgage payments.  All you will have to pay are your taxes and insurance each year, and perhaps homeowner dues, if you live in anHOAcommunity.  Therefore, with your mortgage payment gone, your overhead is greatly reduced and you can afford to retire.  That is a great future to look forward to!

6. Asset investment

Many families start with home ownership as the foundation of their wealth strategy.  As you build your financial portfolio, buying your first home can be a vital stepping-stone to wealth management.  As you pay down your mortgage loan balance, you gain equity.

Although we do not advise you to purchase your family’s home as a way to get rich, we do recognize that many homeowners will eventually “move up” to a larger home for their family.  When they do, they often keep their first house as a rental property.  They hope to receive a small income from the cash flow each month, and then pay off the mortgage and receive a larger cash flow.  The rental income helps supplement their fixed budget during retirement years.

7. It is all yours!

The main reason to buy a home is that it is all yours!  You can paint it.  You can put up pictures.  You can improve it.  You can put in new appliances.  You can put in new carpets or hardwood floors.  You can build a patio and barbecue in the back yard.  Go ahead and decorate, remodel, or add on an extra room for your expanding family.

Renters have many rules and restrictions to follow.  You can have pets without having to get landlord permission.  The children can get a puppy if they want to.  Your family members can move in and you do not need permission from a landlord.  Also, when you are a homeowner, there will not be a landlord giving you a notice to move out.  You do not have to move unless YOU want to.  Your home is allyours to enjoy for many future generations.

CONCLUSION

Yes, you’ll have to make sacrifices to own a home.  But the rewards are tremendous.  In fact, we just gave you 7 reasons why you should own your home.

In the words of top real estate agent Cecilia Kleiner, “in the end, we all need a place to live. Why not have something that belongs to you.”  Home ownership is your piece of the American Dream!

Get all this, plus so much more, in my book, "Buy Your First Home" at http://tinyurl.com/cs4724e